Textile exporters in Pakistan are deprived of liquidity. A major portion of their working capital is yet to be refunded. Incentives under the textile policy are yet to be disbursed. Trade deficit continues to widen and is at a record high of $20.2 billion in the eight months of ongoing fiscal year, which is $5.2 billion higher than the deficit recorded in comparative period previous year.
Financing such a huge gap in the midst of falling exports and stagnant foreign investment has become a challenge for exporters. This will increase their reliance on expensive foreign borrowings. One problem textile and garment exporters have is with gas prices. They say gas rates are almost 100 per cent higher than those paid by other industries.
Pakistan’s textile exports are not growing while the country is aiming to boost exports to touch $2 to $3 billion by June 2018. The textile industry contributes about 60 per cent to Pakistan’s total exports.